Shares of Scotts Miracle-Gro fell 4.1% post-earnings as investors reacted to a cautious outlook, particularly the company's acknowledgment of global supply pressures and increased input cost uncertainty heading into fiscal 2027, despite management's reaffirmation of full-year guidance.

• The company closed Q2 with leverage at 3.71x debt-to-EBITDA, dropping below the 4x threshold for the first time in four years and enabling the start of its share repurchase program.
• Hawthorne divestiture completed, enabling renewed focus on core brands and freeing up management capacity for future growth initiatives.
• Management reaffirmed full-year guidance for 2026, but highlighted ongoing global supply pressures linked to geopolitical events and suggested input costs could present more risk in fiscal 2027.
• Gross margin expansion remains on track for company targets, with emphasis on high-margin branded products; management signaled readiness to take pricing actions in 2027 to defend margins if needed.
• A new Chief Brand Officer was announced to lead digital marketing initiatives and drive online sales growth under the SMG 2.0 strategy, targeting $800M in top-line growth through e-commerce.